How much am I losing right now?
If your savings account pays 0.01% APY and a top high-yield account pays 4.00% APY, the gap on a $25,000 balance is $997.50 per year — and you keep losing it every year you stay put. The number scales linearly with balance: same rate gap, double the balance, double the loss.
Here is the annual gap between a 0.01% big-bank rate and a 4.00% high-yield rate (rates as of April 2026):
| Balance | Annual interest at 0.01% | Annual interest at 4.00% | Annual gap |
|---|---|---|---|
| $5,000 | $0.50 | $200.00 | $199.50 |
| $10,000 | $1.00 | $400.00 | $399.00 |
| $25,000 | $2.50 | $1,000.00 | $997.50 |
| $50,000 | $5.00 | $2,000.00 | $1,995.00 |
| $100,000 | $10.00 | $4,000.00 | $3,990.00 |
These figures use simple annual interest. Daily compounding adds a small amount on top — roughly 0.08% extra at a 4% rate, or about $20 per year on $25,000.
What's the difference between 0.01% and 4.00%?
The difference is a factor of 400 — every dollar earns 400× more interest at 4.00% than at 0.01%. A single dollar in a 0.01% account earns one one-hundredth of a cent per year. The same dollar at 4.00% earns four cents.
For a household keeping $25,000 in cash savings — the median emergency fund target for a US family with $5,000 of monthly expenses — that ratio is the difference between $2.50 and $1,000 of interest in a year.
How does the gap grow over five years?
Compounded over five years, the gap on $25,000 grows to roughly $5,400 (rates as of April 2026, assuming both rates hold flat and interest is reinvested). The compounding pulls the high-yield total ahead faster than a 5× multiple of the one-year gap because each year's interest also earns interest.
| Balance | 5-year total at 0.01% | 5-year total at 4.00% | 5-year gap |
|---|---|---|---|
| $5,000 | $5,002.50 | $6,083.26 | $1,080.76 |
| $10,000 | $10,005.00 | $12,166.53 | $2,161.53 |
| $25,000 | $25,012.51 | $30,416.32 | $5,403.81 |
| $50,000 | $50,025.01 | $60,832.65 | $10,807.64 |
| $100,000 | $100,050.03 | $121,665.29 | $21,615.26 |
These numbers assume the rate is held constant for the full five years. Real APYs are variable and will move with the federal funds rate, but the directional gap between big-bank and high-yield accounts has persisted across rate cycles.
Why doesn't my big bank match these rates?
Big banks fund their savings rates from the spread between what they pay depositors and what they charge borrowers, and they spend more on branches, ATMs, and tellers than online-only banks do. Chase, Bank of America, and Wells Fargo savings accounts have been quoted at 0.01%–0.04% APY across most of 2024–2026. Online-first banks have no branch network to fund and pass more of the spread back to depositors.
The product team at a big bank also knows most existing customers will not move accounts over a rate gap, which removes the competitive pressure to raise the standard tier.
Is there a catch with high-yield accounts?
The most common catches are tier requirements, withdrawal limits, and variable rates. The top advertised APY on some accounts requires a recurring direct deposit or a minimum monthly inflow — Arca's calculator flags these where they exist. Federal Regulation D limits on savings withdrawals were suspended in 2020, but individual banks still enforce per-account limits. Every APY in this post is variable and can change without notice.
FDIC insurance applies the same way at an online HYSA as at a brick-and-mortar bank — up to $250,000 per depositor, per insured bank, per ownership category — provided the institution is FDIC-insured. Verify this on the bank's product page before opening.
Run the math on your own balance
Arca's calculator runs this same comparison against your actual balance and current rate, with the live rate table as of April 2026. Enter your numbers on the home page to see your specific annual and five-year gap.
Arca provides information, not financial advice. Rates are sourced from each bank's public product page and verified manually. APYs are variable and can change at any time.